Determinants of intention to adopt online crowdfunding services among SMEs in Northwestern Nigeria
Access to financing is one of the major constraints to the growth and development of Small and Medium Enterprises (SMEs) in Nigeria. The main sources of SMEs financing besides personal savings are commercial and development banks, and to some extent, government approved intervention schemes for S...
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| Format: | Thesis |
| Language: | English |
| Published: |
2021
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| Subjects: | |
| Online Access: | http://psasir.upm.edu.my/id/eprint/105576/1/SPE%202022%2013%20UPMIR.pdf http://psasir.upm.edu.my/id/eprint/105576/ |
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| Summary: | Access to financing is one of the major constraints to the growth and development of
Small and Medium Enterprises (SMEs) in Nigeria. The main sources of SMEs
financing besides personal savings are commercial and development banks, and to
some extent, government approved intervention schemes for SMEs funding.
Unfortunately, bank-lending conditions in terms of collateral and interest rates have
not encouraged the sector to obtain the desired credits from commercial and
development banks. Several government intervention programs were initiated in the
past but the problem of accessing fund by SMEs remained unsolved. Consequently,
SMEs in developed and emerging economies have resorted to an innovative financing
known as online crowdfunding. However, the usage of this alternative is very low in
developing countries such as Nigeria. Therefore, the main aim of the current study is to
explore the determinants of SMEs intention towards the adoption of online
crowdfunding in Northwestern Nigeria. The determinants of the online crowdfunding
adoption intention used in this study are derived from the Theory of Planned Behavior
and the Technological Acceptance Model with additional two variables adopted from
the AIDA Model. This research employed Survey Research Design and the population
for the study comprised 12,523 SMEs owners in the three states (Kano, Kaduna and
Katsina) of Northwestern Nigeria. Data was collected from a sample of 407 SMEs’
owners through a survey questionnaire. Descriptive Statistics and Structural Equation
Modeling using Smart-PLS 3.0 graphics were deployed in analyzing the data. Results
show that perceived usefulness, perceived ease of use, use of social media, awareness
and attitude have significant positive effects on SMEs intention to adopt online
crowdfunding in the area of study. Moreover, the finding reveal that subjective norms
and perceived behavioral control have insignificant effect on SMEs intention to adopt
online crowdfunding in Northwestern Nigeria. Furthermore, the moderation test
revealed the positive effect of trust on perceived ease of use, the use of social media
and subjective norms on online crowdfunding intention among SMEs owners in
Northwestern Nigeria. Contrarily, trust failed to moderate the effects of perceived
usefulness, awareness, attitude, subjective norms and perceived behavioral control on online crowdfunding intention among SMEs owners. Further, among the three SMEs
Sectors, the manufacturing sector has the highest intention, followed by the services
sector and the agricultural sector. Therefore, based on the findings of the study, which
indicate that SMEs owner have a high level of crowdfunding intention, it is
recommended that government and policymakers should develop a policy framework
that will motivate them to actualize their intention of adopting online crowdfunding to
finance their businesses. Theoretically, the study is among the first few studies to the
integrate Theory of Planned Behavior and Technological Acceptance Model to
measure business owners’ intention of adopting online crowdfunding. Thus, it is also
recommended that future research should test the model proposed in this study in other
Nigerian geo-political zones as well as other developing countries for the comparison
of finding to establish this replication or otherwise. |
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